Volvo Cars battery subsidiary Novo Energy from Sweden has announced that it is cutting a further 150 jobs, reducing its workforce by around half. The move follows the bankruptcy of Northvolt, the former co-owner of the joint venture established in 2021 to build a battery factory in Gothenburg. Novo Energy had already taken initial cost-cutting measures in January 2025, cutting around 30 percent of its workforce.
Production technology not yet installed
Despite an intensive search, Novo Energy says it has not found a suitable technology partner to maintain operations at the current level. Construction of the plant is almost complete, but no production technology has been installed. According to the company, it is currently concentrating on completing the first phase of construction and is investigating the possibility of starting manufacture on a smaller scale at a later date.
No scope for large investments
Volvo Cars acquired Northvoltʼs 50-percent stake in Novo Energy in February 2025 for a symbolic amount and has since become the sole owner of Novo Energy. The company confirmed its interest in battery production in Gothenburg but did not comment on details of future plans. According to previous statements by the companyʼs management, there is currently no scope for major investment.
